Budget 2013 updates

Budget 2013 updates: Some of the important changes done this year are given below:

1. Rajiv Gandhi Equity Savings scheme: RGESS declared in last year budget has been opened to mutual funds and listed stocks too. Max income limit has been raised to Rs 12 lakh from 10 lakh. The investor will be able invest and claim deduction for a period of 3 successive years.
2. Additional 1 lakh home loan interest deduction: For interest paid in  towards first home loan up to Rs 25 lakh (taken in 2013-14) will get an additional Rs 1 lakh interest deduction for self occupied property.
   This rule appears nonsense. One can only get full 1 lakh extra benefit only if he takes loan for full 25 lakh in April 2013 starting and rate of interest is more than 10%. Not sure, how may people can fit into this rule.
3. Inflation index bonds: New inflation index bonds would be introduced.
4. Women only bank: Women only bank would be setup to cater only to women by public sector.
5. More insurance company branches: Insurance companies will be empowered to open branches in tier II cities without prior IRDA approval. All towns with population more than 10,000 to have life and general insurance offices. 
6.  More FM radio station: Each city with population more than 1 lakh may have its private FM radio stations.
7. Tax credit to lowest tax bracket: Rs 2000 tax credit would be provided if total income is below 5 lakh. 
8.  Income tax surcharge: For taxable income above 1 crore, 10% surcharge would be levied. 
9.  1% TDS on property transfer: If property value is more than 50 lakh (except agricultural property), 1% TDS would be deducted on transaction value. 
10. No changes in income tax slabs and rate. 
11.  Gold duty free limit hiked: Men can now come to India with duty free gold upto Rs 50,000 value and women for Rs 1 lakh. 
12.  Service tax on all AC restaurants: Service tax would now be applicable on all AC restaurants. 
13.  Implementation of Direct tax code has again been deferred and won’t be applicable from 1st April, 2013. 
14.  SUVs to be costlier: Excise duty has been raised on SUVs to 30% (from 27%). 
15.  Donations to National Children’s Fund will get 100% tax exemption. 
16.  Mobile phones to cost more: Custom duty is announced of 6% on all mobile costing above Rs 2000.

Looking forward to your comments and feedback

Siddharth Desai
(BLOG: http://desaisiddharth.blogspot.in/ )
(Email: desaisiddharth09@gmail.com)

How To Calculate Perquisite Value In Concessional Loan / Interest Free Loan

As per Income Tax rules if Interest free/concessional loan is provided by the employer to employee , it will be treated as perquisite to the employee and it as per Income tax rules , it valuation should be done and added to the income of the the employee.For interest free/concessional loan valuation interest rate of State Bank of India as applicable on first day of the financial year is to be considered. For Financial year 2012-13 , interest rate as applicable on 01.04.2012 is required ,which has been provided in the table below.

State Bank of India: Interest Rates on 1st April, 2012 ,For the purpose of computing perquisite valuation

Interest rates as on 1st April, 2012 on various loans in Personal Segment advances are as under –

Calculation of Perquisite Value In Concessional Loan /Interest Free Loan

Home Loan Scheme
Loan Amount	Linkage with Base Rate over the tenor of the loan		Effective Rate
Upto Rs. 30.00 lacs	0.75% above Base Rate		10.75% p.a.*
Above Rs. 30.00 lacs and upto Rs. 75.00 lacs	1.00% above Base Rate		11.00% p.a.*
Above Rs. 75.00 lacs	1.25% above Base Rate		11.25% p.a.*
No fixed rate option in any limit bracket.
* A concession of 0.25% in card interest rate over the tenor of Home Loan is available under ongoing special Home Loan campaign upto 30.09.2012.
SBI Car Loan Scheme
For all tenures		For Term Loan:
		1.25% above Base Rate, i.e. 11.25% p.a.
		For Overdraft:
		1.75% above Base Rate, i.e. 11.75% p.a.
NRI Car Loan
		1.25% above Base Rate i.e. 11.25% p.a.
For all tenures
Two- Wheeler Loan
Up to 3 years		8.25% above Base Rate i.e. 18.25% p.a.
Used Vehicles
Up to 3 years		7.25% above Base Rate i.e. 17.25% p.a.
Above 3 yrs		7.50% above Base Rate i.e. 17.50% p.a.
Certified Pre-owned Car Loan scheme
Up to 3 years		6.00% above Base Rate i.e. 16.00% p.a.
Above 3 yrs		6.50% above Base Rate i.e. 16.50% p.a.
SBI Student Loan Scheme
For loans upto Rs.4 lacs		3.50% above Base Rate, currently 13.50% p.a.
Above Rs.4 lacs and upto Rs.7.50 lacs		3.25% above Base Rate, currently 13.25% p.a.
Above Rs.7.50 lacs		2.00% above Base Rate, currently 12.00% p.a.
Xpress Credit
Type		Facility		Rate of Interest
Demand Loan		Check-off from Employer		5.00% above Base Rate Floating, currently 15.00% p.a.
SBI Saral Personal Loan
Demand Loan		Check-off from Employer		8.50% above Base Rate Floating, currently 18.50% p.a.
Loans against NSCs/KVPs/RBI Relief Bonds/Surrender Value of SBI Life /LIC/SBI Magnums, etc.
Upto 3 years		4.50% above Base Rate, currently 14.50% p.a.
More than 3 years and below 6 years		4.50% above Base Rate, currently 14.50% p.a.
Loan against Gold Ornaments
Upto Rs. 1,00,000/-		4.25% above Base Rate Floating, currently 14.25% p.a.
Above Rs. 1,00,000/-		4.75% above Base Rate Floating, currently 14.75% p.a.

Looking forward to your comments and feedback

Siddharth Desai
(BLOG: http://desaisiddharth.blogspot.in/ )
(Email: desaisiddharth09@gmail.com)